Maruti Suzuki Q2 Results: Net Profit Plummets 17.4% to ₹3,069 Crore Amid Stagnant Demand; Find Why!Maruti Suzuki Q2 Results: Net Profit Plummets 17.4% to ₹3,069 Crore Amid Stagnant Demand; Find Why!

Maruti Suzuki Q2 Results: Maruti Suzuki India Ltd. has reported a lackluster performance for the quarter ending September 30, as the company adjusts its production to align with subdued demand in India’s automotive market. The automaker, known for its Swift model, saw its standalone net profit decline by 17.4% year-on-year, reaching Rs 3,069 crore, while revenue experienced a slight increase of 0.4% to Rs 37,203 crore.

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In the company’s Q2 FY25 results, key highlights included a 17.4% drop in net profit, an increase in revenue by 0.4%, and a 7.7% decline in EBITDA, which amounted to Rs 4,417 crore. The EBITDA margin also fell by 100 basis points to 11.9%, indicating challenges in maintaining profitability.

The drop in profit was largely attributed to a significant rise in tax obligations, which surged to Rs 1,015 crore from Rs 67 crore the previous year. This spike is a result of changes in the Union Budget 2024, which eliminated the indexation benefit on long-term capital gains from debt mutual funds bought before April 1, 2023.

Maruti Suzuki noted that the deferred tax liability stood at Rs 837.6 crore, with actual tax payments expected upon the redemption of these assets. The company emphasized that cash outflows for taxes may vary based on actual gains and changes in tax regulations.

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Despite these financial pressures, Maruti Suzuki’s domestic vehicle sales fell 3.9% year-on-year, totaling 541,550 units. In contrast, exports saw a positive trend, increasing by 12.1% year-on-year to reach 77,716 vehicles.